Last year Microsoft
updated Windows, the software that runs over 90 percent of
personal computers. The update was supposed to make Microsoft's
products more touch friendly, allowing it to compete with iOS and
Android, the mobile platforms from Apple and
Google.

Instead, Windows 8 seems to have scared consumers, thus
accelerating the death of the traditional PC model.

"At this point, unfortunately, it seems clear that the Windows 8
launch not only failed to provide a positive boost to the PC
market, but appears to have slowed the market," said Bob
O'Donnell, IDC Program Vice President, Clients and Displays in
IDC's press release.

He added, "While some consumers appreciate the new form factors
and touch capabilities of Windows 8, the radical changes to the
UI, removal of the familiar Start button, and the costs
associated with touch have made PCs a less attractive alternative
to dedicated tablets and other competitive devices. Microsoft
will have to make some very tough decisions moving forward if it
wants to help reinvigorate the PC market."

In other words, IDC says smartphones and tablets are killing PC
sales.

This is really bad news for Microsoft. It is totally whiffing on
mobile devices like smartphones and tablets. If the PC business
continues to contract, it's in a lot trouble.

Here's a look at the decline on per-company basis. Not included
here is Apple, which shipped 1.4 million units in the U.S. per
IDC, a 7.5 percent drop.